Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (3842)	5/15/2001 11:33:49 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

the one additional thing ganging up against the homebuilders is that Lumber prices have risen 50% since the start to APRIL..... yep 6 weeks 50 % higher Lumber futures prices futures.tradingcharts.com futures.tradingcharts.com I have already been talking on the WWoS thread about the possible short in the home builders based on the massive price advance they have had, the very big rise in interest rates that is the lifeblood of New home sales. Also the higher energy rates that are affecting the entire country and more specifically the very big energy hikes hitting Ca. The LA Times has reported that people are cancelling deals to buy new homes at a higher rate the past several months BZH, PHM, HOV, LEN are names that are under shorting consideration. that may make sense soon, both the 10 and 30 year bond yields are over there 200 dma's now and rising and it's very possible we have seen a large H&S top in bonds and inverse H&S in Yield. we may see the steam come out of the housing market with higher rates and the second phase of the downturn, if it develops.. higher rates certainly affect housing starts and sales, and it's very possible that these homebuilders have been building up excesses, inventories, higher expenses with the boom of the past several years. Ca. money woes could contribute to this overall theme. I'm going to start paying more attention to the group.